More Than Half of Victorian Lawyers Use AI, Yet Only a Quarter Cut Client Fees

A recent survey by the Victorian Legal Services Board and the Commissioner’s legal services research centre found that 55% of Victoria’s 2,221 lawyers reported using artificial intelligence (AI) in their practice, up from 37% last year. The study, released in October 2026, shows a steady rise in AI adoption across the state.

Key Findings

• Usage by Age: In 2025, AI use was highest among lawyers under 30. By 2026 the gap had largely closed, though usage remains low for those aged 60 and over.
• Practice Areas: AI is most common in trade practices (85%), banking and finance (78%) and information technology and telecommunications (78%). It is used less in criminal law (29%), family law (45%) and administrative law (46%).
• Tools: 79% of respondents use consumer chatbots such as ChatGPT, Claude, Gemini or Copilot; only 22% rely on legal‑specific tools.
• Fee Impact: Just 26% of lawyers say AI has lowered client fees. The effect is stronger for business clients (34%) than for individual clients (23%).
• Workload: 46% of lawyers report clients arriving with inaccurate or misleading AI‑generated information, and 41% present AI‑produced documents that need correction. Nearly half say AI use has increased their time and effort.
• Verification: In 2025, 89% of practitioners said they verified AI output; this may have reduced the expected efficiency gains.

Implications Lawyers are balancing the promise of AI‑driven efficiency against the reality of increased client‑generated errors and the need for verification. The survey suggests that while AI adoption is widespread, its economic benefits—particularly fee reductions—are limited.

How to Verify The data comes from a census of 2,221 lawyers conducted by the Victorian Legal Services Board. The report is publicly available on the board’s website and can be cross‑checked with the original survey questionnaire.

Practical Takeaway For clients, the rise in AI use means they may need to be more careful with the information they provide to lawyers. For lawyers, the findings highlight the importance of robust verification processes and realistic expectations about fee savings.

Future Outlook Regulators across Australia are tightening rules around AI use in legal practice. The federal court’s new guidelines issued in April 2026 and the High Court’s comments on the “unsustainable phase” of AI‑generated content signal a cautious approach to further integration.